ASMLF - Tracking Lone Pine Capital Portfolio - Q3 2023 Update

2023-12-27 21:26:30 ET

Summary

• Lone Pine Capital's 13F portfolio value decreased from $10.91B to $10.37B in Q3 2023.
• The number of holdings in the portfolio decreased from 29 to 26.
• The top three positions in the portfolio are Meta Platforms, Amazon.com, and MasterCard, accounting for approximately 21% of the assets.

This article is part of a series that provides an ongoing analysis of the changes made to Lone Pine Capital’s 13F portfolio on a quarterly basis. It is based on their regulatory 13F Form filed on 11/14/2023. Please visit our Tracking Stephen Mandel’s Lone Pine Capital Portfolio article for an idea on their investment philosophy and our previous update for the fund’s moves during Q2 2023.

This quarter, Lone Pine’s 13F portfolio value decreased from $10.91B to $10.37B. The number of holdings decreased from 29 to 26. The top three positions are at ~21% while the top five are ~33% of the 13F assets: Meta Platforms, Amazon, Mastercard, Taiwan Semi, and Microsoft.

Note: Stephen Mandel stepped down from managing investments at Lone Pine Capital in January 2019 in a previously announced (September 2017) move. He is currently a managing director at the firm. Stephen Mandel worked at Tiger Management under Julian Robertson for eight years starting in the late 1980s, making him a bona fide tiger cub. To know more about Julian Robertson and his legendary Tiger Management, check out Julian Robertson: A Tiger in the Land of Bulls and Bears.

New Stakes:

Meta Platforms ( META ) : META is the largest 13F position in the portfolio at ~8%. It was established this quarter at prices between ~$283 and ~$326 and the stock currently trades well above that range at ~$358.

Alphabet ( GOOG ) : The ~4% GOOG position was purchased this quarter at prices between ~$117 and ~$139. The stock currently trades above that range at ~$142.

Tempur Sealy ( TPX ) : TPX is a small ~2% of the portfolio position established this quarter at prices between ~$39 and ~$47 and it is now at $51.17.

Block Inc. ( SQ ) : The 1.66% SQ stake was purchased this quarter at prices between ~$44 and ~$81. The stock currently trades at $79.60.

Stake Disposals:

RH Inc. ( RH ) : The 5.36% of the portfolio RH stake was purchased in Q2 2021 at prices between ~$588 and ~$720. The next quarter saw a ~25% stake increase at prices between ~$652 and ~$739. Q4 2021 saw a similar increase at prices between ~$527 and ~$690. H1 2022 also saw a ~12% further increase. The stake was disposed this quarter at prices between ~$257 and ~$402. The stock is now at ~$299.

Note: Lone Pine Capital had a ~7.4% ownership interest in RH Inc. as of last quarter.

Nvidia Corp ( NVDA ) : The 2.49% NVDA stake was purchased last quarter at prices between ~$262 and ~$438. The stake was disposed this quarter at prices between ~$409 and ~$494. The stock is now at ~$494.

Visa ( V ) : The 2.70% of the portfolio V position was established during Q4 2021 at prices between ~$190 and ~$234. The stake was reduced by ~55% during H1 2022 at prices between ~$189 and ~$235. That was followed with a ~30% selling during Q1 2023 at prices between ~$207 and ~$231. There was a ~16% trimming last quarter. The elimination this quarter was at prices between ~$229 and ~$248. The stock is now at ~$259.

Cheniere Energy (LNG), Marqeta Inc. (MQ), Moderna (MRNA), and Sweetgreen Inc. ( SG ) : These small (less than ~2% of the portfolio each) stakes were dropped this quarter.

Stake Increases:

Amazon ( AMZN ) : AMZN is currently the second largest position at 6.70% of the portfolio. It was established in Q4 2017 at prices between ~$48 and ~$60. The position has wavered. Recent activity follows. The position was reduced by ~30% in Q1 2022 at prices between ~$136 and ~$170. That was followed with a ~25% selling during Q3 2022 at prices between ~$106 and ~$145. The next quarter saw a ~45% stake increase at prices between ~$82 and ~$121 while the last two quarters saw a ~50% reduction at prices between ~$83 and ~$130. The stock is now at ~$153. This quarter saw a ~12% stake increase.

Mastercard ( MA ) : MA is a large (top three) 6.67% of the portfolio position purchased during Q4 2021 at prices between ~$306 and ~$370. The position was reduced by ~70% during H1 2022 at prices between ~$309 and ~$397. That was followed by a one-third reduction in the last two quarters at prices between ~$283 and ~$382. This quarter saw a ~50% stake increase at prices between ~$388 and ~$417. The stock currently trades at ~$424.

Taiwan Semi ( TSM ) : TSM is a large (top five) 6.53% of the portfolio position purchased in Q1 2022 at prices between ~$99 and ~$141. The three quarters through Q4 2022 saw a ~30% stake increase at prices between ~$60 and ~$105. The last two quarters saw a ~40% selling at prices between ~$74 and ~$107 while this quarter there was a ~22% stake increase at prices between ~$84 and ~$105. The stock currently trades at ~$105.

Salesforce ( CRM ) : CRM is a 4.89% of the portfolio stake established during the two quarters through Q1 2023 at prices between ~$128 and ~$200. The last quarter saw a ~17% trimming while this quarter there was a ~47% stake increase at prices between ~$203 and ~$234. The stock currently trades at ~$267.

Bill Holdings ( BILL ) : The 2.67% BILL stake was established during Q1 2023 at prices between ~$68 and ~$129. The position was increased by 40% this quarter at prices between ~$98 and ~$136. It now goes for $84.23.

HDFC Bank ( HDB ) : HDB is a 2.64% of the portfolio position purchased during H2 2022 at prices between ~$55 and ~$71. There was a ~35% increase last quarter at prices between ~$64 and ~$71. That was followed by a ~14% increase this quarter. It now goes for $67.04.

EPAM Systems ( EPAM ) : The 2.60% EPAM stake saw a ~9% increase this quarter.

Stake Decreases:

Microsoft Corporation (MSFT): MSFT is now at 5.52% of the portfolio. It was established in Q2 2017 at prices between $65 and $72.50. The stake has wavered. Recent activity follows. The two quarters through Q3 2022 saw a ~43% reduction at prices between ~$233 and ~$315. The next quarter saw a ~23% stake increase while in Q1 2023 there was a similar reduction. The stake was decreased by 28% this quarter at prices between ~$312 and ~$358. The stock is now at ~$374.

Booking Holdings ( BKNG ) : The 4.44% BKNG position was purchased in Q2 2022 at prices between ~$1749 and ~$2375. The two quarters through Q1 2023 saw a ~20% trimming while the last quarter saw a minor ~3% increase. The stake was decreased by 29% this quarter at prices between ~$2633 and ~$3243. The stock is now at ~$3535.

PTC Inc. ( PTC ) : PTC is a 4.33% of the portfolio position purchased during Q3 2022 at prices between ~$100 and ~$126 and the stock currently trades at ~$176. There was marginal trimming this quarter.

LPL Financial Holdings ( LPLA ) : LPL is a 4.22% of the portfolio stake established during Q2 2022 at prices between ~$168 and ~$219 and the stock currently trades at ~$228. There was a ~8% trimming this quarter.

TransDigm Group ( TDG ) : The 3.55% TDG position was purchased during Q3 2022 at prices between ~$525 and ~$677. The stake was decreased by 25% this quarter at prices between ~$813 and ~$882. The stock is now at ~$1008.

Dick's Sporting Goods ( DKS ) : The ~3% DKS stake was purchased during H1 2022 at prices between ~$71 and ~$118. There was a ~30% reduction last quarter at prices between ~$122 and ~$149. That was followed by a ~11% trimming this quarter. The stock currently trades at ~$147.

Live Nation (LY V ) : LYV is a ~3% of the portfolio position purchased last quarter at prices between ~$65 and ~$92. There was a ~7% trimming this quarter. The stock currently trades at $92.98.

Bath & Body Works ( BBWI ) : BBWI is currently at 2.84% of the portfolio. It was purchased in Q1 2020 at prices between ~$9 and ~$25. There was a ~26% selling in the last five quarters. That was followed by a ~47% reduction this quarter at prices between ~$31.50 and ~$39. It is now at $42.71.

Note: Their implied cost-basis is understated in the prices above as ~$14 per share in value came back to them with the Victoria’s Secret spinoff transaction (one share of VSCO for every three shares held) last July.

ASML Holding NV ( ASML ) : ASML is a 2.16% of the portfolio position established during the last two quarters at prices between ~$379 and ~$697 and it currently trades at ~$764. There was a ~17% trimming this quarter.

Floor & Decor Holdings ( FND ) : The 1.89% FND stake was purchased during the last three quarters at prices between ~$65 and ~$104. The stake was decreased by 42% this quarter at prices between ~$90 and ~$115. It is now at ~$115.

Kept Steady:

Workday Inc. ( WDAY ) : WDAY is currently at 5.34% of the portfolio. It was established in 2021 at prices between ~$221 and ~$301. The last six quarters saw a ~55% reduction at prices between ~$133 and ~$244. The stock is now at ~$274.

UnitedHealth Group ( UNH ) : The 4.33% UNH stake was established in Q2 2017 at prices between $164 and $187 and increased by ~160% the following quarter at prices between $185 and $200. The position has wavered. Recent activity follows. H2 2022 saw a one-third stake increase at prices between ~$500 and ~$555 while the next quarter saw a ~16% selling. The stock is now at ~$523.

KKR & Company ( KKR ) : KKR is a 3.90% of the portfolio position purchased during Q1 2023 at prices between $46.70 and $59.10 and the stock currently trades at $83.34.

ICICI Bank ( IBN ) : The 2.68% of the portfolio IBN stake was established during Q3 2022 at prices between ~$18 and ~$23 and it is now at $24.02.

AvidXchange Holdings (AVDX) : The very small 0.46% stake in AVDX was kept steady this quarter.

Note: Regulatory filings show a ~10% ownership stake in Klaviyo (KVYO).

The spreadsheet below highlights changes to Mandel’s 13F stock holdings in Q3 2023:

Source: John Vincent. Data constructed from Lone Pine Capital’s 13F filings for Q2 2023 and Q3 2023.

For further details see: